Case Study

Sale and restructure of an environmental services organisation

A well-known private equity house was willing to finance one of its portfolio companies but the package of new investment was rejected by the Company’s bank.

The target Company was operating in the environmental services market. Its trading history was unstable, its management team was unable to affect a turnaround and its principal bank was becoming increasingly hostile.

Without on-going support from the Company’s bank, the private equity house was prepared to write off its investment in full.

ReSolve was asked to advise the private equity house in respect of its investment.

Following an initial review of the Company, ReSolve identified that a viable business existed which should be financially supported by all stakeholders. Believing there to be significant value at risk and prepared to commit time and money, ReSolve acquired the private equity house’s debt and equity, and paid off the bank in order to take full control of the situation and restructure the business in a consensual manner.

ReSolve spent several months working contingently with the Company to restructure the business and find a buyer, to ensure all stakeholders maximise their chances of a recovery. A sale of the business was achieved, some 190 jobs were saved, the management team earned bonuses, and significant value was returned to the private equity house where otherwise it would have received nothing.

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